Only 12% of Millennial Entrepreneurs Carry Small Business Insurance
When it comes to running a small business, there are several things that can go wrong. From the growing threat of cybersecurity breaches to the potential for natural disasters to impact their businesses, entrepreneurs have plenty to worry about. Despite this it seems that only a small number of younger business owners are protecting their businesses via various commercial insurance policies.
According to a survey by Liberty Mutual Insurance, just 12% of Millennial business owners carry any kind of insurance for their businesses. Furthermore 40% report that having such policies never even occurred to them and few knew what types of insurance was needed. Meanwhile 35% expressed concern about the financial commitment insurance policies would take, which is why they’ve avoided taking out policies previously.
As you might expect, Millennials were also found to be more likely to have an entrepreneurial side hustle (in addition to their full-time jobs) than those of older generations. Liberty Mutual’s survey found that 38% of Millennial respondents were pursuing a side hustle compared to 26% of Gen Xers and just 11% of Baby Boomers. Interestingly the younger generation’s entrepreneurs were also more prone to worrying about their businesses, with 54% of Millennials voicing their concern compared to 44% and 34% of Gen Xers and Boomers respectively.
Commenting on the survey’s results and lessons, Liberty Mutual’s president of independent agent distribution Tyler Asher said, “Insurance may not be top of mind on any given day for a small-business owner – but an employee injury or data breach can happen at any time, and these incidents can really impact a small business.” He went on to note, “Not having the proper insurance could be catastrophic for a small business. Liberty Mutual aims to empower small business owners and independent agents to be prepared and protect small businesses to ensure they are financially protected.”
Obviously this survey’s sponsor Liberty Mutual has a vested interest in spreading the word about different types of business insurance. Nevertheless these results do highlight an important point in that too few businesses and business owners are properly protected. Although not every type of insurance policy will make sense for businesses across the board, it may be in entrepreneurs’ best interest to take a closer look at what their insurance needs may be now and in the future.